Ashok Leyland informed that its board has approved acquisition of upto 19% additional equity shares in Hinduja Leyland Finance (HLFL) from the existing shareholders.
The acquisition is being done for a cash consideration not exceeding Rs 1200 crore. The transaction is subject to regulatory approvals, it added.
The commercial vehicle manufacturer said that the acquisition is being undertaken to consolidate holding in HLFL. The transaction would be executed in tranches, within a period of twelve months from the date of approval.
Shares of Ashok Leyland ended 0.16% higher at Rs 64.35 on Wednesday 18 March 2020.
HLFL is an RBI registered non-banking finance company. In FY 2018-19, the company reported a profit after tax of Rs 275.64 crore and revenue of Rs 2560.64 crore.
Ashok Leyland, flagship of the Hinduja group, is amongst the largest manufacturer of commercial vehicles in India and also amongst the biggest manufacturers of buses and trucks globally.
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